European rates: Bunds – where now?
LONDON | June 11, 2015 | UBS | We believe that a bear trend has started in European bonds and we continue to forecast 2% for 10-year Bund yields for the end of next year.
Markets
Resilient Eonia fixing, fragile long Eonia rates
LONDON | June 9, 2015 | By Giuseppe Maraffino (Barclays) | Eonia and Euribor fixings (as well as OIS rates up to 1 year) have been immune to the new round of high volatility. This is because they are more sensitive to liquidity conditions and the current abundant liquidity surplus at about EUR300bn has been an important protection.
Stoxx 600 at its lowest level since February
The Corner | June 9 , 2015 | Some European indexes experienced important losses on Monday (look at the Stoxx 600 today). Market watchers say we can already talk about corrections (-10% from its peak in mid-April)
Bond markets riskier than stocks
The Corner | June 8, 2015 | After all, equities are supported by the cycle and the upturn in business results. On the other hand, bond markets are negatively affected by the improvement of the economic outlook and a scenario where deflation is not considered anymore.
The cross-market context of bond sell-off
UBS | June 5, 2015 | While core yields in the euro area are still low in absolute terms, the relative attractiveness of these markets when currency-hedged has improved.
European stocks down due to Greek saga
The Corner | June 5, 2015 | Reactions to yesterday’s meeting between Tsipras and Juncker will focus the attention of European equity markets today. The Eurostoxx 600 Index dropped 0.8% to 389.64 at 8:09 a.m. in London, down 5.8% since a record in April.
ECB seeks “full QE implementation”
MADRID | June 3, 2015 | So far, monetary policy stimulus is working as planned, ECB’s president Mario Draghi insisted on Wednesday, and the bond buying program needs to reach full implementation until September 2016. The central lender rules out any earlier taper and will keep rates on hold.
ECB unlikely to change the message that it intends to implement QE “in full”
LONDON | June 3, 2015 | UBS | The fact that the Eurozone’s headline inflation pick-up was related not just to headline HICP but also to core inflation will be acknowledged positively by President Draghi in today’s press conference. Yet, the ECB will be careful not to deviate from the message it has given in recent months.
Bonds rise amid closer Greek deal
MADRID | June 3, 2015 | By Francisco López | Markets are still awaiting a possible agreement between Greece and its creditors. Stock markets are shivering one day, then the next one it’s the bonds’ turn to suffer, depending on the rumour of the day.
Euro QE trade – benchmarking against Japan
BNP Paribas | June 4, 2015 | In many respects the Japanese QE experience since 2013 is a pretty good playbook for European equities.